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Grant audits and assurance reports

Q: How is a grant audit different to a statutory audit?

A statutory audit examines an organisation's full financial statements and provides an opinion on whether they present a true and fair view in accordance with the relevant accounting framework. A grant audit or grant assurance report has a much narrower scope, focusing only on income and expenditure relating to a specific grant claim. Depending on the funding body's requirements, the report may present factual findings or provide either limited or reasonable assurance. Brebners can advise on the type of report required to meet your grant conditions.

Q: Who can carry out a grant audit?

Many funding bodies require grant audits or assurance reports to be completed by a registered auditor or an independent qualified accountant who meets the professional standards specified by the grant provider. The exact requirements will depend on the terms of the funding agreement.

Q: What does a grant audit involve and how do I prepare?

A grant audit involves reviewing evidence to confirm that grant funding has been spent in accordance with the grant agreement. Organisations should maintain accurate accounting records, retain invoices, receipts and supporting documentation, and keep clear records of grant-related transactions. The grant awarding body will normally specify the procedures to be performed, and the audit firm may request transaction reports, supporting documents and explanations before completing the required report.

Q: What are the different types of grant audit report?

The three main types of grant audit report are a reasonable assurance report, which provides a positive opinion; a limited assurance report, which provides a negative form of conclusion; and an agreed-upon procedures report, which reports factual findings without expressing an opinion. The funding body will usually specify which report is required, with reasonable assurance engagements involving the greatest level of audit work.

Experienced registered auditors for your funding compliance obligations

Brebners have been trusted advisers to the media and creative industries for many decades and our clients including creative businesses and local and national arts organisations have often engaged us to provide grant audit and assurance services. Owing to our experience in this area, we are now often approached to provide assurance reports not just to the creative sector but to various types of business engaged in innovative work funded or part-funded by government or charitable bodies.

Why Choose Brebners

✔ Expertise as statutory auditors

Brebners have a large audit team operating out of our central London and Kent offices. Working under five Responsible Individuals, registered statutory auditors with ultimate responsibility for quality control, our decades of experience in conducting statutory audits for businesses from multi-national groups to small owner managed businesses means that we have all the requisite knowledge to carry out efficient and targeted audit and assurance procedures.

✔ Expertise with grant audits and assurance reports

Although often referred to as grant audits, many funding programmes actually require assurance engagements or agreed-upon procedures reports. We have provided assurance reports in connection with Innovate UK grants, EU funding of arts projects, lottery funding and funding from charities, as well as certain forms of assurance in connection with lending for creative projects. We conduct this work under recognised international standards such as ISRS 4400 (Agreed Upon Procedures Engagements) or ISAE (UK) 3000 for limited or reasonable assurance engagements.

✔ Flexibility and personal service

We’re large enough to have wide ranging expertise and the flexibility to provide reports at relatively short notice to meet reporting deadlines whilst maintaining quality, but small enough that you always receive a personal partner-led service. Our team will speak your language and your dealings with us will be jargon-free.

✔ We move with the times

Brebners use cutting-edge technologies in our dealings with you to maximise efficiency whilst maintaining data security.

In the words of Andrew Owen, Group Chief Accountant at the British Film Institute whom we have assisted with grant-related assurance work:

“We have always found them to be courteous, efficient and their charges reasonable, with an appropriate level of service. We are therefore happy to recommend them for audit and accounting services”

For more testimonials, see Testimonials

Ready to Talk?

If you're looking for a registered auditor to provide you with an assurance report to comply with funding terms, please reach out to our expert team.

Contact us today for a free, no‑obligation discussion and fee estimate.

Frequently Asked Questions

How is a grant audit different to a statutory audit?

The word ‘audit’ is usually used in connection with a statutory audit where an entity’s full financial statements are examined and an opinion expressed as to whether they give a true and fair view in accordance with the relevant accounting framework. The use of the word ‘audit’ can lead to confusion, as grant ‘audits’ or assurance reports are much more limited in scope, focused on income and expenditure in relation to a specific grant claim. Often, procedures are carried out by the audit firm which state the results of those procedures without giving an opinion. Sometimes an opinion is given, but it may be a lower level of assurance than is given in a statutory audit. Brebners can help you to ensure that the right type of report is prepared to comply with the terms of your funding.

Who can carry out a grant audit?

Many funding bodies require reports to be provided by a registered auditor or an independent qualified accountant who meets specified professional requirements.

What does a grant audit involve and how do I prepare?

The grant sponsoring body or grant awarding body will usually expect that evidence has been retained by the awardee to demonstrate that grant monies have been spent in accordance with the grant terms and for the intended purpose. You should have a system for recording the relevant transactions proportionate to the size of your organisation (so this could be accounting software or could be spreadsheets) and should have retained receipts, invoices and other documentation connected with those transactions. The grant awarding body will usually dictate the work to be conducted by the audit firm. Often, you will provide the firm with your cost reports or transaction records, and a sample of invoices and certain explanations will be requested from you until the audit firm is satisfied that they have carried out sufficient work to meet the requirements of the grant awarding body.

What are the different types of grant audit report?

There are three main types of report that can be provided, and the grant sponsoring or awarding body will usually dictate which is required. These are a reasonable assurance report containing a positively worded conclusion (e.g. “the amounts recorded have been spent in accordance with the terms and conditions of the grant agreement”), a limited assurance report containing a negatively worded conclusion (e.g. “nothing has come to our attention to suggest that the claim has not been prepared in all material respects in accordance with the terms and conditions of the grant agreement”), and an agreed-upon procedures report where no conclusion is given but the findings from certain pre-agreed procedures are reported. A reasonable assurance report involves the most work on the part of the audit firm.